Hi ChristBarer and welcome here.
First, I assume that sound is working properly in your Windows 7 installation (i.e. listen mp3).
Second, open the Psycle configuration window:
- [Configuration] -> [Settings...] -> [Input/Ouput]
In the Audio configuration, what sound driver is selected? Be sure that it is not chosen the driver ''Silent'' (obviously).
Try to choose any other sound driver listed here and play any of the demo songs packed in Psycle to test which driver works.
Come back here if this suggestion doesn't resolve your problem.
(???)Oo. X( :( :| :) :)) :D .cC(Psycle!)